FRANCHISE TRADE NOW OPEN AN ACCOUNT GLOBE E-KYC
Fund Managers Interview
Prev Next
We believe that Indian equity is a very promising asset class to invest in, over the medium term, despite the recent smart run up in the market
01-Aug-2017 (14:52)
One has to be selective in identifying the companies /sectors with high growth potential
05-Jul-2017 (18:30)

Mr. RITESH JAIN
In an interview with Anjali Raulgaonkar from Capital Market Publishers, Ritesh Jain, CIO, BNP Paribas Mutual Fundsaid, We have had preference for high growth companies as we believe higher earnings growth reflects in superior price performance eventually.

Excerpts:

Where do you see the Indian stock market heading in near term?

The markets have moved up sharply as Nifty has yielded ~18% returns and midcap index ~26% in CY2017 led by strong domestic macros, improving global outlook, global equities rally, lesser impact of demonetization than expected, strong flows from both Domestic and FII investors and hopes of a second consecutive year of normal monsoons. While corporate earnings growth has been lower in last few years, the stage is set for earnings growth to pick up in the ensuing years. while valuations are higher than Long term average, we believe higher earnings growth in next 2-3 years could provide investment opportunities for long term investors. However, going forward, we believe one has to be selective in identifying the companies /sectors with high growth potential.

We believe the government's long-term vision of game changing reforms supported by a slow but steady improvement in economic growth in this calendar year may help build sustainable growth for investors in Indian equities. While the organised sector has been gaining share from unorganised sector, the pace may accelerate post GST implementation which could be positive for the listed companies which largely operate in the organized sector.

What is your investment space?

We focus on companies across the market cap spectrum. Our investment styleis to buy companies with a long-term investment horizon, which is reflected in our bias towards B2C companies and structural themes like consumption / retail financials in India. we have preference for market leaders or companies gaining market share. If Business fundamentals of any company deteriorates we sell it and invest in other ideas that fit in our philosophy.

Any stock specific traits which makes it part of your portfolio? What?

We have always focused on companies with superior businesses that have higher and sustainable earnings growth. We have had preference for high growth companies as we believe higher earnings growth reflects in superior price performance eventually.

We follow BMV framework of investing. Various investment ideas are filtered through our BMV (Business - Management - Valuations) framework of company selection before adding it to investment universe. The Business fundamentals are analyzed based on different parameters like secular trends, uniqueness of business model, moat of business etc. Management's execution capabilityis key in delivering sustained returns within the realm of industry dynamicsand corporate governance are important parameters. Growth At ReasonablePrice (GARP) is the philosophy that is followed while assessing valuations.

What kind of stocks you avoid, why?

We avoid companies which don't fit in our investment philosophy of BMV framework. We avoid companies which are cheap but don't have strong business or management. Similarly, we give high importance to management track record and corporate governance. We have preference for companies which generate good cashflows from the business on a regular basis, hence we stay away from companies with inferior/negative cashflows.

-Is there any pre-emptive miss you regret (for instance, not investing in a stock or not possessing enough of it)?

We always strive to follow our investment process as highlighted earlier, in its true spirit. Hence, we do not regret not owning stocks which have gone up, which do not fit in our investment philosophy. While in case of any stock which we are holding is not performing, we continuously focus on the continuity of moat and growth of the company and would continue to own as long as it fits in our philosophy.

What will be your advice to investors?

Investors should invest in stocks/funds after assessing their future income and liabilities/cash flow requirements. Investing in equities is akin to participating in a marathon rather than a 100 metre sprint. One has to remain invested keeping the long term in mind as equities tend to be volatile over the short term. We believe India has higher growth opportunities in many bottom up companies/sectors from a longer term perspective as per capita income improves and the favourable demographics plays out . Equities being a long-term asset class with 3-5 years horizon,investors with long term approach could invest in Indian equities.

Match the investment horizon and risk appetite to the scheme selection
08-May-2017 (14:53)
In India ETFs are still at a nascent stage and the retail participation is very low
27-Mar-2017 (14:06)
Earnings recovery would be important for the markets going ahead
02-Mar-2017 (14:47)
Given firm crude prices and rising commodity prices, we expect inflation to go up to 4%-4.50% in H1FY18
28-Feb-2017 (12:25)
Demonitisation has stalled the uptick in consumption cycle
31-Jan-2017 (13:21)
We expect inflation to undershoot RBI's target of 5% by March 2017
09-Dec-2016 (17:30)
In the medium to long term, the Indian equity market will be primarily swayed by the trajectory of earnings growth
08-Dec-2016 (16:41)
Potential increase in house rent allowances and GST implementation could push headline inflation above the RBI's 4%+/-2% target in 2017
03-Oct-2016 (16:00)
We would therefore advise investors to continue to invest systematically in Indian equities and use any volatility caused by global factors to their a
28-Sep-2016 (18:36)
We expect the bond yields to come down by further 15-20 bps over the next 6 months
17-Aug-2016 (14:33)
We are running a maturity of 13 to 14 years in our Quantum Dynamic Bond Fund as we expect easy liquidity and cut in repo rates in the coming months
26-Jul-2016 (14:42)
Currently, we are in an environment where global outlook is marred with uncertainty but there is a clear pick up in the domestic economy
07-Jul-2016 (10:33)
Connect with us :   
Globe
About us
Our Services
Milestones
Memberships
Core Values
Investor Relations
Product & Services
Broking
Institutional Broking
PMS
Clearing Services
Distribution
Research
Depository
Trade & Products
Globe Connect Pro
Globe Trade Smart
Globe Connect Mobile/Tablet
Globe News Connect
Globe e-KYC Application
Back Office
Back Office
CMS
CMS-TM
KYC/KDC Status
Mutual Fund
CAMS
RMS Policy
Helpdesk
Download Forms
Useful Links
BSE
NSE
SEBI
RBI
MCX
NCDEX
Exchange Holidays
Policies, Procedures, Rights, Obligations and RDD
Guidance Note on FATCA and CRS May 2016
Right and Obligation, RDD, Guidance Note in Vernacular Language
In case of any grievances pleae write to
Investor_trading@globecapital.com /  igr@globecapital.com (For Trading)     globedp@globecapital.com (For DP)    Investor_pms@globecapital.com (For PMS)     
commigr@globecapital.com (For Commodities)
SEBI Regn. No. NSE.:INB/INF/INE 230663732, TM No.:06637, Clearing No.- M50302 | SEBI Regn. No. BSE.:INB/INF/INE 010663731, Clearing No.- 3179 | SEBI Regn No. MSEI :INB/F 260663738, INE 260663732, TM Code-1004, Clearing Member Code- 4 | USE SEBI Regn no. - INE 270663732 , CM code: 06637 | SEBI Regn for DP : IN-DP-NSDL-97-99, NSDL- DP ID: IN300966, CDSL DP ID: 12020600 | Research Analysts Regn No. INH100001187 | PMS Regn No. INP000002361
* Through subsidiary Globe Commodities Ltd. --> Commodity Membership No.: NCDEX- FMC Regn. No. NCDEX/TCM/CORP/0004, TM Code-00012 | MCX- FMC Regn. No. MCX/TCM/CORP/0628, CM Code-8550 | ICEX- FMC Regn. No. ICEX/TCM/CORP/0011, TM Code- 1009 | NMCE- FMC Regn. No. NMCE/TCM/CORP/0018, TM Code-CL0111 | ACE - FMC Registration no.- ACEL/TCM/CORP/0163, TM code- 4001 | UCX FMC Regn. No.: UCX/TCM?CORP/0014, TM Code- 10014 | NCDEX Spot Exchange Membership no.- NCDEXSPOT-CR-07-10011
** Through step in subsidiary Globe Comex International DMCC --> DGCX **TM Id.1064, CM Id.3064*
"We also do Pro-Account trading in Commodity Segment.."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Attention Investors:
"Prevent Unauthorised transactions in your account --> Update your mobile numbers/email IDs with your Stock Brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day .......... Issued in the interest of investors"
"Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDL/CDSL on the same day......................issued in the interest of investors."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
© 2013 Globe Capital Market Limited. All rights reserved
Designed, Developed and Content powered by C-MOTS Infotech (ISO 9001:2008 Certified) Privacy Policy Disclaimer Terms and Conditions